US EditionPublished • loading... • Updated
Bank of England lowers rates after tight vote but signals caution about further cuts
The Bank of England's 3.75% base rate is the fourth cut in 2025, driven by slowing inflation and weak economic growth, with a narrow 5-4 vote by its Monetary Policy Committee.
- On December 18, the Bank of England's Monetary Policy Committee cut the base rate from 4% to 3.75% in a narrow five-to-four vote, marking its lowest level in almost three years.
- Falling inflation to 3.2% and weak growth prompted the Bank's decision, with CPI at an eight-month low and unemployment at 5.1%, aiming to return inflation to 2%.
- Tracker borrowers will benefit immediately, with analysis showing monthly payments fall by nearly £29 for around 533,000 tracker mortgages outstanding, UK Finance reports.
- For those remortgaging soon, a spokesperson for Mojo Mortgages said, "Fixed rate mortgages have already seen a reduction. For example, the average two-year fixed rate has fallen from 4.5 percent to 4.3 percent and the average 5-year fixed rate has dropped from 4.4 percent to 4.2 percent."
- Markets are already pricing further cuts, with analysts saying markets are pricing one further quarter-point cut in the first half of 2026 and Andrew Bailey signalled rates remain on a gradual downward path.
Insights by Ground AI
97 Articles
97 Articles
Bank of England cuts interest rates to lowest in almost three years after sharp dip in inflation
The Bank of England on Thursday cut its key interest rate for the first time in four months amid signs that the stubbornly high inflation that has plagued British consumers and businesses is beginning to ease.
·Mumbai, India
Read Full Article
Swindon Advertiser+4 Reposted by 4 other sources
'Early Christmas present' for borrowers as Bank of England cuts interest rates
The Bank of England has cut interest rates to 3.75, with an average saving of around £150 a month for those currently on a tracker mortgage
·Swindon, United Kingdom
Read Full ArticleCoverage Details
Total News Sources97
Leaning Left14Leaning Right7Center27Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 29%
C 56%
15%
Factuality
To view factuality data please Upgrade to Premium
